Crypto stocks surge as Bitcoin flirts with $25k mark

The world’s largest crypto has punched to its highest levels since August, with crypto-linked stocks also soaring in tandem on Wednesday:

• Stronghold Digital Mining: +29.9%
• Cipher Mining: +20.8%
• Argo Blockchain: +19.3%
• Marathon Digital: +18.3%
• Coinbase: +17.5%
• Bitfarms: +14.4%
• Hut 8 Mining: +14%
• Bit Digital: +12.4%
• Riot: +12.9%
• Bit Mining: +10.7%
• Canaan: +9.1%
• Ebang: +8.6%
• Cleanspark: +8.5%
• Hive Blockchain: +7.6%

 

In full admission, the expected price reaction stated in Tuesday’s crypto article did not materialise: the higher-then-expected US inflation data did not drag Bitcoin back into sub-$21k territory.

Instead, it’s on course for 3-consecutive days of gains for the first time in four weeks.

Market data suggests a short squeeze has lent themselves to this recent price surge, with Coinglass data pointing to US$64.5 million of short positions in Bitcoin being liquidated yesterday.

The surge across crypto land suggests that, not only were markets able to shrug off Tuesday’s higher-than-expected US inflation data, but also heightened regulatory woes.

Here are just some recent developments on that front from the past week alone:

• The Securities and Exchange Commission (SEC) is proposing a new rule that makes it harder for crypto platforms to hold digital assets belonging to clients of hedge funds and private equity (PE) firms.
   
• The New York State Department of Financial Services has ordered a stop to any further issuance of BUSD, the third-largest stablecoin belonging to Binance, the world’s largest crypto exchange.
  This has prompted customers to redeem about US$1.4 billion of BUSD in just 2 days.
   
• Crypto exchange Kraken, had to pay a US$ 30 million fine to the US Securities and Exchange Commission while forced to ditch its digital-asset staking instruments.

 

The crypto world is expected to continue wading through the ongoing fallout from last year’s high-profile implosions and the tightening regulatory net for a long while more.

At least for the near-term, the latest price surge should at least hearten crypto afficionados who might be able to ride this bullish momentum for a little while longer, especially if Bitcoin can officially reclaim the $25k handle.

And with broader US stock futures also pointing to a positive open at the time of writing, such risk-on mode for broader equity markets may spell further immediate gains for crypto-linked stocks on US exchanges as well.